State-Run Utility Company PLN Denies Having Financial Problems
Jakarta. State-run utility company Perusahaan Listrik Negara, or PLN, denied having financial problems following a leaked letter sent by Finance Minister Sri Mulyani Indrawati.
"All of PLN's debts are paid on time and none have missed its due," Sarwono, PLN's finance director, said in a statement late on Wednesday (27/09).
"I think it was just a reminder, we considered it as a normal thing," he said.
According to Sarwono, PLN's debts have reached Rp 58 trillion ($4.3 billion) over the past three years but the company received Rp 145 trillion during the same period, indicating that the company has enough funds to cover its debts.
Sarwono said PLN has planned and projected its debt payment for the next 30 years, keeping track on each debt's due date and interest rate. The company also has a rescue protocol if the company is short on liquidity.
"So the fear of default does not exist," he said.
The Energy and Mineral Resources Minister Ignasius Jonan and PLN president director Sofyan Basir also shared the same opinion.
"If the PLN's financial state is coming toward a yellow light, then I think the minister of state-owned enterprises and I would report it to the president and the finance minister," Ignasius said. "The condition is safe, under control."
Sri Mulyani reportedly sent an official letter to Ignasius and State-Owned Enterprises Minister Rini Soemarno on Sept. 19 to give warning on PLN's ailing financial performance over the past three years.
The letter emphasized the importance of increasing electricity tariffs and cutting production costs to keep the company afloat.
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